Q2 2024 Sats ASA Earnings Call Transcript
Key Points
- SATS ASA (OSL:SATS) reported its sixth consecutive quarter of record-high revenues and EBIT levels, indicating strong financial performance post-pandemic.
- The company has successfully increased its revenues by 10% over the last 12 months to NOK4.9 billion, with a significant portion of this translating into profitability.
- SATS ASA (OSL:SATS) has reduced its leverage ratio from 4.7 to 1.7, well within its target range, demonstrating improved financial stability.
- The company has refinanced a NOK2.5 billion revolving credit facility with favorable terms, extending maturity to 2027, which strengthens its financial foundation.
- SATS ASA (OSL:SATS) plans to distribute at least 50% of its net profit to shareholders through dividends and share buybacks, reflecting strong cash generation and shareholder value focus.
- The company experienced a seasonal decline in its member base by 17,000 members during the second quarter, which is typical but still a negative trend.
- Despite revenue growth, the company faces challenges with elevated churn rates and the need to balance price increases with member retention.
- SATS ASA (OSL:SATS) plans to close underperforming clubs, which may impact local market presence and member convenience.
- The company anticipates increased costs due to inflation and investments in new classes and concepts, which could pressure margins in the short term.
- There is a risk that strategic initiatives and growth opportunities might impact the level of capital distribution to shareholders, potentially affecting investor expectations.
Good morning, everyone, and welcome to the SATS Q2 2024 presentation. My name is Sondre Gravir, I'm the CEO of SATS, and I also have with me here today Cecilie Elde, our CFO. We will run a Q&A session at teams at 10:00 AM today. This will be a pure Q&A session, without any further presentations. You will find the link to the Q&A session in the stock market announcement we published this morning both at Newsweb and at satsgroup.com.
Then moving on, Cecilie will cover the financials from the second quarter later in her section. And I would like to start by taking a step back and look at the development of SATS during the past few years. As we have improved our operational and financial performance notably overtime.
Number one, looking back, SATS had a solid development prior to the pandemic. The pandemic had a big negative impact on our operational and financial delivery. Then after the pandemic, we have gradually improved our operations, product offering and financial result quarter by quarter, and we are today presenting the
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